Virtual Galaxy Infotech IPO: Check price band, GMP, subscription and other key details

Virtual Galaxy Infotech has launched its initial public offering (IPO) today, May 9, aiming to raise Rs 93.29 crore through a fresh issue of 65.70 lakh shares. The IPO, which is entirely a fresh issue, will be open for subscription until May 14 with the allotment likely to be finalized on May 15. The company is expected to list on the NSE SME platform on May 19.

The IPO proceeds will be primarily used for capital expenditure towards setting up an additional development facility in Nagpur, Maharashtra, repayment of certain borrowings, and investment in upgrading data center infrastructure, including GPU, server, and storage systems.

The company also plans to allocate funds towards enhancing existing products through manpower hiring and expanding business development and marketing activities. The remaining funds will be used for general corporate purposes.

Check Virtual Galaxy Infotech IPO price band

The price band for the Virtual Galaxy Infotech IPO has been set between Rs 135 to Rs 142 per share. Retail investors can apply for a minimum of 1,000 shares, amounting to a minimum investment of Rs 1,35,000.

Virtual Galaxy Infotech IPO GMP

The GMP for the company is around Rs 6 in the unlisted market ahead of the issue opening. This is a premium of 4% over the issue price.

Virtual Galaxy Infotech IPO details

Virtual Galaxy Infotech IPO is a book-building issue with a total size of Rs 93.29 crore, comprising 65.70 lakh shares entirely through a fresh issue. The company’s shares will be listed on the NSE SME platform, with Alacrity Securities as the market maker.

Smart Horizon Capital Advisors is the book-running lead manager, while Maashitla Securities serves as the registrar.

About Virtual Galaxy Infotech

Incorporated in September 1997, Virtual Galaxy Infotech is an IT services and consulting firm headquartered in Nagpur, Maharashtra.

The company provides a wide range of software products and solutions, including banking and financial services, ERP, e-government, cloud computing, IoT, and system integration.

Its flagship product, “e-banker,” is a comprehensive Core Banking Solution that serves over 5,000 bank branches. The company’s clientele includes commercial banks, cooperative banks, NBFCs, and corporate clients across sectors like sugar, textiles, fertilizers, and education.

Financials

For FY24, the company reported a revenue of Rs 63.58 crore, up from Rs 59.76 crore in FY23 and Rs 43.44 crore in FY22. Profit after tax surged to Rs 16.54 crore in FY24, compared to just Rs 0.72 crore in FY23 and Rs 0.40 crore in FY22.

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